Family/Co-Owner Corporate/Trusts A Pilot Project to create land consolidation alternatives

The current state of “Corporate” ownership The Secretary of the Interior and Congress already recognize one form of ownership by Indian corporations This has not posed a problem for heirship or trust status for over 70 years The administrative burden lies with usage and ownership controls

Tribal Corporation Model This was used by the Rosebud Sioux Tribe to form the Tribal Land Enterprise in 1943 Land enterprise purchases land interest from landowners, who are given shares in enterprise Fractionation of land interests ends, shares are transferrable via sale/will/intestacy Any landowner holdouts may be bought out by corporation For protesting landowners, could present an issue -- classes of landowners (e.g. <5% interest automatically bought out)

Tribal Corporation Model Trust land status maintained: Landowners that choose to keep land maintain an undivided interest of land Landowners that choose to receive shares in Tribal Corporation maintain trust status through incorporation through IRA Sec. 17 or Tribal Incorporation code Land use through assignments No upfront costs to Tribal Corporation, simply an exchange of shares for undivided land interests Tribal Corporation determines valuation process of shares and distribution method Will-writing initiative and AIPRA intestacy continues to apply to landowners that opt out of Tribal Corporation

Allotted Land Exchange or Tribal Corporation Shares AIPRA Tribal Corp. Charter

But what about the individual?

Guiding Principles Land Consolidation = Control The outcomes for the entity must be determined by the owners Usage of the land takes precedence over modern concepts of ownership Enabling documents and corporate instruments need to be in plain, direct language Entities may have perpetual life Corporate forms are guided and limited by their charter and bylaws The economic burden of Trust administration should not be shifted onto the entities

Land Uses Cultural/Spiritual Agricultural Forestry Ranching/Grazing Residential* Commercial* Mineral Extraction* * These land uses are given special notation to recognize that they make substantial permanent changes to the character of the land

Potential Family Corporate Trust Values The land is the People o Family ties o Cultural ties o Historic preservation Collective vs. Singular benefit Environmental stewardship Commercial development Profit distribution Tribal jurisdiction Trust responsibility

Trust Status One of the concerns with each model is that the land remain in trust (whether title is with landowner or family/corporate trusts) Family/corporate trust model should be insulated against any trust status issues “The Secretary shall consult with tribes, individual land owner organizations…to – Develop proposed rules, regulations and guidelines to implement the [project], including – reporting and other requirements that the Secretary determines to be appropriate for administering such entities…” AIPRA (m)(1)(B)(ii). This suggests that the “reporting and other requirements” the Secretary demands will fulfill Secretarial administration and therefore BIA oversight needed for trust land status

Family Corporate Trust Models Individual Allotment Corporation Family Consolidation Corporation Private Consolidation Corporation Power of Attorney?

Individual Allotment Corporation Member Non-Member

Individual Allotment Corporation You and your relatives create a way to agree on how to use that piece of land. 50%+ = speaking with one voice; control (veto power) Assemble ownership to permit viable use Viable uses Commercial development Residential development Family-level farming and ranching Mineral extraction Spiritual/cultural

Basic Family Corporate Trust Member Non-Member Allotments

Family Consolidation Corporation Preserving your families connection to reservation lands Multiple tracks of land Corporation designates common resources to continue consolidation Common effective use

Private Consolidation Corporation Allotments Non-allotted land

Private Consolidation Corporation Allotments Non-allotted land Consolidated allotments Members

Private Consolidation Corporation Assemble land acreage into sufficient quantity to permit viable economic use 50%+ = control (veto power) Development for “active” economic use Commercial development Economic-scale ranching Economic-scale farming Residential development Mineral extraction Generates revenue

What about Power of Attorney? Allows for ease of majority action through agent Most tribal laws already recognize this legal instrument Will the Secretary of the Interior recognize this model? Does it address land consolidation?

Project Objectives By the end of 3 years, originate and provide technical assistance for the operation of 15 Family/Corporate Trusts By the end of 5 years, create 5 effective, different Family/Corporate Trust Models By the end of 5 years, provide 50 educational trainings on How to Develop an Appropriate Family/Corporate Trust By the end of 5 years, evaluate and determine the success/failure of corporate “ownership” of Indian Trust Lands